Introduction to the Candle Timer Indicator For MT5
Most professional traders place a very high importance on the closing price in relation to the opening price. In fact, it is common for professional swing and position traders to discuss only the open and close price. This is because the closing price confirms the direction of the market with the context of the other parts of price action, such as the highs, lows, and opens. This is why candlestick patterns work.
However, this type of trading only works when the actual pattern is confirmed, and patterns are only confirmed when the candle closes. This is why traders need to avoid trading when the candle is still far from closing, and the Candle Timer indicator can help us do this.
What is the Candle Timer Indicator?
The Candle Timer indicator is a custom technical indicator which displays the remaining time before the current candle would close.
How the Candle Timer Indicator Works?
The Candle Timer indicator works by retrieving the time from the broker’s server. It also retrieves the time when the next candle would begin. Then, it calculates for the difference between the projected open time of the next candle and the current time on the broker’s server.
The difference between the open time of the next candle and the current server time is then displayed on the right side of the chart as the remaining time for the current candle before it closes.
How to use the Candle Timer Indicator for MT5
The Candle Timer indicator is not like most technical indicators because it does not indicate how you should trade. It does not provide trend direction or bias, reversal signals, support and resistance levels, and the likes. Instead it is a tool that would allow traders to time their trades correctly.
Traders can pair this indicator with other trade indications such as reversal candlestick patterns, reversal trade signals, breakouts, and the likes. Traders simply need to wait for the time displayed on the Candle Timer to wind down to zero or at least close to zero. If the candle signal does not reverse before the time winds down, then the trade setup is considered valid.
Buy Trade Setup
When to Enter?
Identify a bullish trade setup which requires a candlestick pattern to completely form such as breakouts, bullish reversal candlestick patterns and the likes. Wait for the Candle Timer to wind down near zero. Enter the buy trade if the pattern still holds true. Set the stop loss at the support below the entry candle.
When to Exit?
Set the take profit target at the next resistance level and allow price to hit the target.
Sell Trade Setup
When to Enter?
Identify a bearish trade setup which requires a candlestick pattern to completely form such as bearish breakouts, bearish reversal candlestick patterns and the likes. Wait for the Candle Timer to wind down near zero. Enter the sell trade if the pattern still holds true. Set the stop loss at the resistance above the entry candle.
When to Exit?
Set the take profit target at the next support level and allow price to hit the target.
The Candle Timer Indicator is particularly useful with trade setups that require the close of a candle to be confirmed, such as breakouts and reversal candlestick patterns.
It basically helps traders avoid false signals such as false breakouts and fake outs.
Recommended MT5 Broker
- Free $50 To Start Trading Instantly! (Withdrawable Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
(Free MT5 Indicators Download)
Click here below to download: